By the numbers, it looks like it is running too rich, or you are getting an incomplete burn.
Make sure the motor is fully warmed up before testing. A nice high-speed run can make a big difference.
Also, MA inspection equipment is notoriously inaccurate. There was something in the press about his recently, but folks in the know have been talking about it for years. Apparently, some reporters did an 'undercover expose' and blew the whole emissions testing system wide open.
Firsthand, I once got a high reading on a car that was running very sweet. In disbelief, I went elsewhere, and it passed easily. A number of folks I know were snagged by bad equipment at this particular testing facility, and passed when I steered them elsewhere.
Anyways, sounds like you have some known issues, so this may not be a promising option in your case.
Best of luck.
1986 300E 5-Speed 240k mi.